Flashback corporation is evaluating an extra dividend


Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $21,060 would be spent. Current earnings are $3.60 per share, and the stock currently sells for $90 per share. There are 3,900 shares outstanding. Ignore taxes and other imperfections.

What will Flashback’s EPS and PE ratio be under the two different scenarios?

1. Extra dividend

EPS?

PE Ratio?

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Financial Management: Flashback corporation is evaluating an extra dividend
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